Whether you need a car abroad depends almost entirely on where you’re going. In most cities that attract 50+ expats — Lisbon, Barcelona, Mexico City, Chiang Mai, Medellín — a car is often more burden than convenience: parking is expensive and scarce, transit is functional, and the local rhythm of life is designed around walkability and public transportation. In rural areas of France, Italy, or Portugal, or in many parts of Mexico and Costa Rica outside the major cities, a car is essentially necessary for any reasonable quality of daily life.
Getting this question right in destination research — how car-dependent is this specific area, and do I want that lifestyle — is often more important than the licensing and insurance details, which are manageable once you’ve decided the location makes sense.
The International Driving Permit: What It Is and When You Need It
An International Driving Permit (IDP) is not a standalone license — it is a translation of your existing US driver’s license into multiple languages, recognized by countries that are signatories to the relevant conventions. In most countries, a US license plus an IDP is sufficient to legally drive for the duration of a tourist stay, typically 30–90 days depending on the country.
IDPs are issued in the US by AAA and the American Automobile Touring Alliance, cost $20, and can be obtained in person at AAA offices or by mail. They require a valid US driver’s license, two passport photos, and the application fee. The IDP is valid for one year from issue date. Getting one before departure is advisable for any country where driving is anticipated — it costs almost nothing, takes minimal effort, and eliminates a common checkpoint friction.
When You Need a Local License
Most countries that attract long-term expats allow foreign nationals to drive on their US license (often with IDP) for a limited period after establishing residency — commonly 90 days to one year. After that period, local law typically requires obtaining a local driver’s license. The process for doing so varies significantly by country.
Portugal and most EU countries require passing a local written exam (available in English in many locations) and sometimes a practical driving test, even for experienced foreign drivers. Mexico allows US citizens to drive on a US license indefinitely in most states, though some states have begun requiring local licensing for residents. Thailand requires obtaining a Thai license after 90 days of residency, which involves a vision test, reaction test, and brief practical examination. Costa Rica allows driving on a US license for as long as the US license is valid, which has made it popular for expats who prefer to avoid the local licensing process.
Researching the specific requirements of your destination country before departure — and building the timeline for any required licensing process into your arrival planning — avoids the common experience of discovering unexpected requirements after you’ve already been driving for several months.
Car Insurance Abroad: Not Optional and Not Automatic
Your US auto insurance does not cover you abroad, and driving without local insurance is both illegal and genuinely risky. Local car insurance is required in virtually every country, and the consequences of an accident while uninsured can range from significant fines to criminal exposure depending on jurisdiction.
If renting a car, the rental company’s insurance coverage options are the most straightforward path, though they are expensive for long-term use. For expats who are buying or leasing a vehicle locally, local auto insurance is purchased through local insurers — typically through an insurance broker in the destination country who can explain the coverage options in the local market. International insurers including AXA and Allianz operate in most expat-destination markets and sometimes offer the convenience of English-language service and claims handling.
Driving Adjustments That Take Time
Road culture varies significantly between countries, and the adjustment is real. In Portugal and Spain, roundabouts are ubiquitous and require right-of-way confidence that US drivers don’t develop driving on a grid. In Mexico, road conditions vary dramatically between highways and secondary roads, and nighttime driving on rural routes carries risks — both road quality and security — that make it worth avoiding. In many Southeast Asian countries, motorcycles and scooters outnumber cars and use road space in ways that require constant awareness and patience from drivers accustomed to more predictable traffic patterns.
The honest advice: drive conservatively and observe rather than performing for the first few weeks in a new country. The locals know the unwritten rules; visitors who drive as if they’re at home often create friction and occasional incidents. Watching how traffic actually flows — where the informal yield points are, how lane discipline actually works, what the local norms are around speed and following distance — is more useful than studying traffic laws, which rarely describe actual driving behavior in any country.
